How to avoid investment scams

Fraudulent lenders, brokers and advisers recommend investment products that may not fit in to your objectives or may work to benefit them more than they do you. They lead you into buying high risk investments that may not generate you any money in the end. Many people have lost their money to schemers and fraudsters. It is up to you to be careful with your money, identify and prevent investment fraud before it happens to you. Below are some ways to help you prevent investment fraud

When you get a financial advisor, do a background check before making any investment decisions with them. Ask for credentials from the advisor to confirm that they are qualified for the job. Talk to previous clients about their experiences with the advisor and if there are complaints, investigate further on the reason behind these complaints. Most companies and advisors have an online presence; check their reviews and comments before hiring anybody or signing any contracts.

Reject unexpected offers, especially those from unknown contacts. Most high risk investment scams and fraudulent companies tend to contact people first looking for gullible individuals to trick. They can reach you by email, text, cold calling, seminars and advertisements on the web. If an unexpected offer shows up in your email, text or call, simply don’t respond. Engaging this kind of scammers will give them reason to keep contacting you. They use persuasion to tire you then lure you into investing with them.

Spot warning signs portrayed by investor companies. They downplay the risk of investments, for instance they lie about the interest rates and property ownership. These companies apply pressure to make you invest quickly. They use bonuses, discounts and deadlines to give you less opportunity to think about a deal. You are promised unbelievable returns that sound too good to be true. Fraudulent investors are not able or willing to explain their investment strategies to first time-investors.

Never invest in ideas or property when you do not understand the purpose, results and terms of the investment. Learn how to invest with online resources or from friends and colleagues. You should evaluate investment risks and opportunities for potential gain. Make sure you seek legal guidance before signing any investment papers. Make sure that any firm you are investing with is regulated by the government.

Always be sceptical and ask questions when the investment deal seems too good to be true. If investors try selling you a deal with no risks and huge returns, it may be a scam. Some schemers disguise themselves as large investment companies. They steal their information and use it to lure in unaware customers. Be cautious about where you spend your money and who you trust it with, some scammers may be good at what they do.

Be careful when you receive unsolicited investment offers from companies you have never heard of. If someone recommends an unknown investment, do your research before making a deal. Lastly, if you think an investment is a scam or you have been a victim of an investment fraud, contact security for a way forward.